The Value of Silver

Kawhia Settler and Raglan Advertiser, Volume XIX, Issue 992, 2 January 1920, Page 4

The Value of Silver

Tho cabled quotation for bar silver last week was 79|d |.or oudco standard, while before the war the price ranged between 2id and 26d per ounce. The exchange value of rupee is now 2j 4|d, as compared with Is 4d prior to the war. This I appreciation in the exchange is | all* ciing Eastern trade and adding considerably to the cost of Eastern I produce, apart from the actual rise in | the price of commodities. The tea planter in Ucylou. the Indian peasant | growing rice or jute, and those exporting such Commodities want to be pa din the currency of the country. Thus a New Zealand merchant buying a thousand rupees’ worth of tea has to pay considerably more than prior to the war. When the lupeo stood at Is 4d the New Zealand merchant had to find £66 IBs 4d plus the freight and insurance to obtain lis one thousand rupee tea shipment. For a similar bhipmmt

now, he has to find £llB 15s plus treight and insurance. The freight charges are higher, and the prime cost of tea is higher, but the direct effect of the adverse exchange is that £52 Is 8d more has to be paid for the came quantity of tea than in the prewar period, an increase of 78j per cent. In view of ibis it is difficult to see how it will be possible to avoid a sharp increase in the prices ot Eastern commodities. The very high price of silver is proving a strong temptation to melt silver coms, ttnd there is danger of sucu coiu disappearing in the melting-put. It was eainnaled some lime ago that the price uf bar silver would have to reach 5s 8d to give the melters of cuius any profit, but that price was exceeded long since, arid the price lust week »vas 6s 7d per ounce. There is every prospect of silver coins disappearing from Circulation, nut withstanding the fact that it is illegal to melt clown coins. ludia is the great sink for the piecious metals and precious stones. The use ot precious metals in artistic industry is bound up with the religious and the marital customs of the people ot India and these customs cannot be upset by Legislative Acts and decrees. lhe demand tor purposes of domestic and seligtous maumactme varies from year to year on account uf the character of the me extent of tne great pilgrim fairs, and lhe astrological prupiuouauess of the times fur marriage, ibere is also a great absorption ot rupees or bar silver beyund the frontiers of ludia. The rupee is accepted pructicaby all over tne East, because it is tne only Eastern com ot silver using countries which has not undergune depreciation er debasement over a long series ef years.

India on her trade balance is able to demand the bigu txcuange ; that is to say, her position in luicruanonai trade is such that sho has mure to receive (han to pay ; the is in LG. very much of a citUuor iii£d mu United Oiates and Japan. Tne dollar exchange and me rupte exchange are oom adverse to Great nntatu and to hu dominions wtm smiling currency. The prooaoiiuy that silver coins win be in short supply has kd ue Federal Government to provide tor mu issue ot 5s notes, ana it id not uniikeiy that some similar provision may be made in New Zealand. It ia a wonder mat some effort id not made to call in the damaged silver coins that cannot be circulated, but which cornu be accepted ut their face value, and sent for recoinage or otherwise dealt with. it does not seem likely that the Imperial GuvurnmeuL will take any siepa to Stabilise either the dollar or rupee exchanges, pruler/iug tliai a solution Oi the problem should bo brought about by natural iawt. The nnpuits from the JUniiud b.a.ea and India must be checked, and jt tea becuui s very dear the people may be ierutd io orink culfee ana cocoa. However, iUiurnaiiuuul trade will todow He line ot least res Is Lance and trade id grupiug tor this line. An lilusn alien ut iUe difficulties of the position is allotded by lhe sale ot a hue ot copper by L nuon merchants to Czeeucthe payment tor which wad to be mode in hops. The barter system appears to be the only means ui restoring inlu.national trade m cases where low exchaugu countries have to deal with those whore exchange Is high.

Mr Sheldon, Australian Trade Oommisaioner, spent throe days in Boston, where he was entertained by the leading business men interested in the wool trade. Mr Sheldon dealt with the question of the sale of Australian wool to the British Government. He pointed out that the sale co Britain was a vital advantage to both Britain and Australia, because it enabled Australia largely to finance her share of the war. This arrangement was continued until June, 1920, in order to enable Britain and Ausralia to readjust themselves on a peace lime basis without the com olicnions which would otho:wise have been caused by large parcels of wool using thrown on the market in competition with individual growers. Mr Windier, the British Governaieni’s wool representative in America, said that the British hoped that by Novem ber, 1920, the new clip of Australian wool would be coming into the European market, when there would be left on lhe hands of the British Government only about half a million bahs of wool from all souices. Mr Bbeldon, in erviewed, said that great interest was being shewa in Australian wool tops, for which there is a ready market in America.